Senate has hours to advance CLARITY, but Bitwise says missing deadline sets up a crypto rally

The US Senate is running out of time to advance the CLARITY Act, but Bitwise says a decisive failure could eventually remove an obstacle weighing on crypto markets.Senate leaders face a narrowing window on Wednesday to file for cloture if they want to preserve a chance of voting on the digital asset market structure bill before lawmakers leave Washington.The Senate’s scheduled state work period begins Aug. 10, while Bitwise Chief Investment Officer Matt Hougan said lawmakers are expected to leave Friday and return Sept. 14.The Senate’s Wednesday floor schedule was focused on government funding legislation and did not list the CLARITY Act, leaving supporters with only hours to secure a procedural path forward.Hougan said passage remains the best outcome for the industry and could start a new crypto bull market. However, he argued that a clean collapse in the bill’s near-term prospects could prove better for prices than months of unresolved negotiations.“The best thing that can happen if Clarity doesn’t pass this week is that the Polymarket odds break solidly lower,” Hougan wrote in a Tuesday memo, adding that a drop into the teens could allow markets to put the uncertainty behind th...